Correlation Between Pollux Investasi and Surya Fajar

Can any of the company-specific risk be diversified away by investing in both Pollux Investasi and Surya Fajar at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Pollux Investasi and Surya Fajar into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pollux Investasi Internasional and Surya Fajar Capital, you can compare the effects of market volatilities on Pollux Investasi and Surya Fajar and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Pollux Investasi with a short position of Surya Fajar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pollux Investasi and Surya Fajar.

Diversification Opportunities for Pollux Investasi and Surya Fajar

-0.53

Correlation Coefficient

Pollux Investasi  Surya Fajar

Excellent diversification

The 3 months correlation between Pollux and Surya is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Pollux Investasi Internasional and Surya Fajar Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Fajar Capital and Pollux Investasi is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Pollux Investasi Internasional are associated (or correlated) with Surya Fajar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Fajar Capital has no effect on the direction of Pollux Investasi i.e., Pollux Investasi and Surya Fajar go up and down completely randomly.

Pair Corralation between Pollux Investasi and Surya Fajar

Assuming the 90 days trading horizon Pollux Investasi Internasional is expected to under-perform the Surya Fajar. In addition to that, Pollux Investasi is 1.26 times more volatile than Surya Fajar Capital. It trades about -0.1 of its total potential returns per unit of risk. Surya Fajar Capital is currently generating about 0.11 per unit of volatility. If you would invest  183,000  in Surya Fajar Capital on December 30, 2024 and sell it today you would earn a total of  4,000  from holding Surya Fajar Capital or generate 2.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Pollux Investasi Internasional  vs.  Surya Fajar Capital

Pollux Investasi Int

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pollux Investasi Internasional has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Pollux Investasi is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Surya Fajar Capital

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Surya Fajar Capital are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Surya Fajar is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Pollux Investasi and Surya Fajar

The main advantage of trading using opposite Pollux Investasi and Surya Fajar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pollux Investasi position performs unexpectedly, Surya Fajar can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Surya Fajar will offset losses from the drop in Surya Fajar's long position.

The idea behind Pollux Investasi Internasional and Surya Fajar Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.